Decision on a potential gas hub in Türkiye would be taken in 2023, however, the platform will comprise of a variety of suppliers, including from Russia, Russian deputy prime minister said on Friday.
‘We are currently working actively on this issue with our Turkish colleagues and other potential countries that could participate in the project,’ Alexander Novak told Russia 24 TV.
Explaining details about the gas hub project, Novak said since Algeria, Qatar, and Azerbaijan are currently supplying gas to Europe, gas hub would include not only Russian suppliers, but also other exporters.
‘I think the decision will be made in 2023,’ he said.
Novak said the planned gas hub in Türkiye would be a center where the prices would be determined according to the market conditions as an alternative to the platforms in the Netherlands and England.
He said that by the end of June, Russia’s oil output had reached pre-war levels after insurance and payment concerns in the oil industry with ‘friendly nations’ were settled.
-Russia may trim oil output
Novak warned that Russia would ban the supply of oil and petroleum products to countries that adhere to the price ceiling imposed by the Western countries.
Novak noted that his country may also reduce oil production in early by up to 7% to 500,000 or 700,000 barrels per day as a response to the price cap move.
He further warned that the price of petroleum products was expected to increase by February next year as additional sanctions enter into effect.
The G7 countries, EU, and Australia previously agreed to impose a $60 per barrel price ceiling on Russian seaborne oil exports as of Dec. 5 and for petroleum products as of Feb. 5.
– Russia’s natural gas output expected to reduce
Novak said Europe’s price cap on natural gas is unreasonable and would have an impact on nations like Norway, Algeria, and the US.
‘It seems to me that our European partners do not fully understand that such measures will lead to redistribution of gas. With such restrictions, the supplying countries look for other markets and thus dramatically reducing gas liquidity in Europe,’ he said.
Novak said Russia’s natural gas production decreased by 18 to 20% in 2022.
He went on to say that our gas industry would have produced 671 billion cubic meters (bcm) of gas in 2022. ‘Approximately 470 bcm of this volume will be supplied to the domestic market.’
